@klooskate wrote:
gave me $5000 to sign the papers. So, they didn't actually forgive my debt, they got me out of it, but I was insolvent at the time. It is kind of confusing, I hope this makes sense. Thanks for your help.
They did not cancel your debt, they paid you $5000 for something, so that is taxable income (so the 1099-MISC is correct).
As for your debt, I don't know the specifics of that, so I can't really comment about that.
